Wednesday the Rally Resumes on the Japan Scam

AAPL had OK earnings and it's up about 3% overnight so that's pumping 0.6% into the Nasdaq from that stock alone.  The big news of the day is Euro-Zone PMI Reports coming in better than expected, pretty much across the board.  Forget the fact that they are, overall, at 50.1 on a scale where 49.9 is contracting – 50.1 is NOT CONTRACTING!!!

Not contracting?  That is FANTASTIC!  Let's have a party.  And a party is exactly what Europe is having, with the indexes up 1% or more across the board.  Sure, unemployment is at a record high – but you can't make an economic omelette without breaking the hopes and dreams of a few million workers – can you?  

Of course, what people tend to forget is that the Purchasing Managers Index is a survey of the expectations of Purchasing Managers for the NEXT 6 months.  In other words, Draghi promises free money, people with high-paying jobs who are not unemployed believe him, and their expectations improve.  This is what's raising the market 1% – isn't that silly?

Asian investors, however, think bad news is still bad news and China's stocks fell for the first time in three days, led by financial and commodity companies, as an unexpected decline in a preliminary manufacturing index boosted concern the economic slowdown is deepening.  

Another "positive" being spun in the Western World is Japan's exports rising 7.4% from last year to 6.06Tn Yen.  That's also exciting the EU and US markets ahead of the bell but boy oh boy are they schmucks!  Surely I can't be the only person in the Western World capable of doing currency conversions, can I?  

The reason the Nikkei futures (/NKD) are languishing at 14,850 while our Futures celebrate Japan's export numbers is because, last

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